Town of Westborough Cafeteria Plan
All eligible employees of the Town of Westborough are invited to participate in the Town's Cafeteria Plan. Cafeteria plans are allowed by IRS (Section 125).
The cafeteria plan offered by the Town of Westborough is a premium only plan. The plan allows employees to make their premiums to group health and group term-life insurance with pre-tax dollars. The benefits which come under the Town's Cafeteria Plan are:
- Health Insurance
- Dental Insurance
- Basic Term Life Insurance
- Portable Voluntary Term Life Insurance and AD&D
An employee is able to utilize pre-tax dollars to pay his/her share of any insurance premium(s) -- which means your premiums are not subject to Federal and State taxes. The premium(s) are deducted from your gross pay first; then you are taxed on your 'adjusted gross'; resulting in paying less in taxes and having more take home pay.
The Cafeteria Plan is optional - you do not have to participate. If you do not wish to take advantage of the tax savings available under it, you can request that your premium(s) for any eligible benefit you select be on a "post-tax" dollar basis. This means you will be taxed on your full gross pay and then the premium(s) will be deducted.
Participating in the Cafeteria Plan does have certain restrictions. You may only drop/change a benefit during the Town's Open Enrollment period which takes place in June with an effective date for the benefit(s) of July 1st.
There are ' Qualifying Events' (certain conditions outside of the Open Enrollment period ) that allow changes to be made to your elected health insurance benefit coverage.